Case study #3Hussain Traders LLC is providing the following information. You are required to prepare Cash Budget forthe period of 6 months from July to December 2020. All amounts in Rials.MonthJulyAugustSalesRent120,0006,0004,000140,000 7,0005,000September 110,000 6,0007,000October130,000 4,0003,000November 120,000 6,0004,000December 150,000 8,000 5,000MarketingExpensesAdditional information:Salaries8,0004,0005,0004,0006,0007,000a) Cash sales 50% and the balance in the following monthb) Commission received RO 20,000 in the month of November.c) Sale of Fixed Assets in the month of December for RO 5,000d)Purchase of Printing Machine in September RO 50,000e) Interest payment to bank RO 40,000 in the month of Octoberf) All other expenses are paid on the 1st of next month.g)Opening Balance for the month of July is RO 50000.AdministrativeExpenses1,0002,0004,0003,0007,0005,000

Cash budget is used to compute closing cash balance so as to estimate cash deficit or cash surplus.

Answered: Case study #3 Hussain Traders LLC is…

Quickbooks Online Accounting

3rd Edition

ISBN:9780357391693

Author:Owen

Publisher:Owen

Chapter8: Budgets And Bank Reconciliations

Section: Chapter Questions

Problem 3.3C

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